After failing to recover its previous high, HYPE continued to decline, and market focus shifted from Hyperliquid's long-term growth to short-term supply pressures and sentiment changes. In this latest round of decline, institutional address transfers, discussions on governance proposals, and expectations of staking exits became several key factors suppressing buying interest.
Bitwise has been transferred to an exchange again.
According to on-chain tracking account Lookonchain, Bitwise transferred another 117,917 HYPE tokens to Coinbase, worth approximately $7.05 million at the time. Similar exchange deposits have been observed multiple times in the preceding weeks.
These types of transfers do not necessarily mean that the tokens have been sold, but a continuous flow of tokens into exchanges is usually seen by the market as a potential sell signal. For short-term investors, this expectation alone is enough to make buying more cautious.
The HIP-3 proposal sparks controversy.
Another factor weighing on sentiment is the discussion surrounding Hyperliquid's proposed HIP-3 upgrade. This proposal plans to introduce optional KYC and whitelisting features for deployers. Some market participants believe this will help attract more institutional users.
However, some argue that this could undermine Hyperliquid's early success in scaling as a licensee-free platform. Whether the proposal will ultimately be implemented and how it will be executed remains a key focus for the market in the short term.
$50 to $52 becomes a key support level
Besides the governance controversy, the market is also digesting news of a large-scale exit of staking by early investors. Even if these tokens are not sold immediately, the expectation of increased potential circulation may still prompt some funds to take profits after the previous surge.
At the same time, uncertainties arising from the macroeconomic environment are also suppressing overall risk appetite in the crypto market. For highly volatile altcoins, weakened buying interest often amplifies price pullbacks.
From a technical perspective, HYPE previously encountered resistance multiple times around $76 to $78, subsequently entering a period of sustained decline, with the price center continuously shifting downwards. The report mentions that the $50 to $52 area is currently a key support zone for the market, as this level is also close to the 200-day moving average and historical demand levels.
If this area is breached, the market could fall further to the $35 to $40 range; only if the price rebounds above the downtrend line and recovers above $62 could it indicate that short-term selling pressure is beginning to weaken.
Despite the pressure on token prices, Hyperliquid remains one of the most actively traded decentralized perpetual contract platforms in the crypto market. In the coming period, the market will focus more on short-term supply changes and the speed of sentiment recovery than on the protocol's long-term positioning itself.
